Long Answer Questions · Q12
Q.Explain the causes for the growth of Public Expenditure in India.
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Start your 14-day free trial to unlock the full solution →Public expenditure in India, as in most countries, has grown substantially over time for several reasons:
- Population growth, raising spending needs for food security, health, education, and civic amenities for a larger population.
- Urbanisation, increasing demand for urban infrastructure — water supply, sanitation, transport, and housing.
- Defence and internal security needs, rising with modernised weaponry and the scale of security threats.
- Welfare-state functions, as government has taken on a growing role in social security, poverty alleviation, subsidies, and employment schemes.
- Inflation, which raises the money cost of the same physical goods/services the government purchases.
- Rising interest burden on public debt, as past borrowing must be serviced through growing interest payments.
- Expansion of public sector enterprises and infrastructure investment, requiring heavy capital expenditure on power, railways, and ports. …
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